Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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business insurance

Do business insurance benefits outweigh the costs? To answer this question each business must examine their specific insurance needs by performing a cost versus benefits analysis and include in this assessment the risks associated with daily business operations. You can find more affordable business insurance when you enter your ZIP code in our FREE comparison tool.

Variables of a cost versus benefits analysis

The analysis must take into account all variables that pertain to the total number of years that the business has been in operations, the industry sector, the total amount of gross revenue and the type of risks that need to be covered by the policy.

Any business cost analysis would be incomplete without comparing total costs from different competitors to negotiate for the best rates. A

cost related assessment for business insurance will help determine the exact dollar amount that needs to be deducted from business expenditures to cover the policy premiums, monthly, quarterly and annually and the appropriate amount of coverage that is needed.

Begin by requesting a no-obligation rate quote to build a cost analysis worksheet that includes a critical breakdown of all the business related variables.

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Compare rates

A comparison will allow the business owner to analyze different insurance products and then make an informed decision based on which competitor provides comprehension coverage in terms of benefits versus costs in monetary value.

Use the secure online request form to get a free, no-risk business insurance quote.

Benefits of business insurance

benefits of business insurance

  • Protects valuable business investments against loss, theft and liability lawsuits
  • Provides coverage for commercial property and casualty
  • Includes employee accident liability coverage
  • Offer value to the business in the form of supplemental insurance coverage
  • Applied savings and discounts represent a return on the investment
  • It is possible to purchase multiple policies from different insurance providers without penalty

Business related costs associated with policy coverage

  1. Coverage is more expensive for small businesses and self-employed entities
  2. Premiums will increase as the business grows
  3. Multiple policies are needed for commercial property and vehicles
  4. Higher costs are associated with industry specific insurance
  5. Premiums may be higher at the expiration of the policy

It is possible to find commercial insurance coverage, getting a free rate comparison will help keep costs in check. Just provide your necessary business information and any specific requirements to review different types of policy coverage. Use our FREE comparison tool now!

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Business Insurance offers protection against the following types of liabilities and losses:

  • Coverage for third party injuries caused by your business operations
  • Damage caused to the property of a third party
  • Business insurance provides protection against lawsuits involving libel, slander, wrongful entry and false arrests
  • Business owners are protected from liability lawsuits prompted by misleading or false advertising
  • Insurance for damage to office equipment and crime coverage for employee theft, robbery or burglary

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Higher Insurance Premiums

Business insurance is based on the cash flow at the time of policy purchase and this amount may fluctuate. To get the best value for the money request a comparison, check the rate quotes to determine which insurance provider offer a policy that is not auditable.

If the premium is based on revenue, check the fine print to see if the premiums will be adjusted to reflect business growth during end of the year audits. Business owners should always read the fine print before signing the policy. If the policy is subject to an adjustment, it will be listed in the business owner’s common policy conditions.

Types of Business Insurance

  1. Workers Compensation
  2. General Liability
  3. Umbrella Coverage
  4. Professional Liability
  5. Employee Practice Liability
  6. Employer Liability
  7. Self-Employed Liability
  8. Product Liability

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Saving money with a cost comparison

The way to save money on business insurance to ensure that the benefits outweigh the cost is select a local insurance provider. Get a free, instant business insurance rate quote to find the best rate and purchase the policy online to secure even greater savings.

benefits of business insurance

There are risks associated with doing business regardless of the industry and these risks include:

  • Fraud
  • Damage due to fire, intentional and accidental
  • Natural disasters that may cause work stoppage and lead to loss of revenue
  • Environmental hazards
  • Lapses in policy coverage

The above are variables that most business owners can do little about, but preventing lapses in policy coverage is manageable.

Always remember to gain the greatest benefit from business insurance, the company should:

  • Always maintain current policy coverage
  • Carry all form of insurance-Workers Compensation, Life, Property and Liability
  • Maintain a safe, worker friendly environment to avoid accidents and lawsuits
  • Never allow the business to be without protection by going underinsured or uninsured

Summary

The out of pocket costs associated with not having business insurance is considerably higher than maintaining proper coverage. Being sued is far more costly than any business insurance premium.

If a lawsuit is levied against your company by an employee or a third party due to gross neglect or negligence that results in unintended injury, the litigation process itself can drain the company’s finances.

Obtaining insurance is beneficial for asset and revenue protection, which is a cushion that allows room for long term growth and success. Avoid high premiums by finding the most competitive offer for business insurance.

Only purchase business insurance after finding out exactly how the insurance is going to benefit your business and what the costs will be, check to see if there are any additional costs associated with providing policy coverage because of the specific nature of the risks related to your industry.

Request a FREE cost comparison and instantly receive rate quotes from multiple business insurance providers. Compare competitive rates for all business related insurance products such as comprehensive general liability and auto insurance.